The key issues related to different elements of the marketing mix that are discussed in
this chapter are:
Product– are there opportunities for modifying the core or extended product online?
Price– the implications of the Internet for pricing and the adoption of new pricing
models or strategies.
Place– the implications for distribution.
Promotion(what new promotional tools can be applied) – this is only discussed briefly
in this chapter since it is described in more detail in Chapter 8.
People, process and physical evidence– these are not discussed in detail in this chapter
since their online application is covered in more detail in Chapters 6, 7 and 9 in con-
nection with customer relationship management and managing and maintaining the
online presence.Before embarking on a review of the role of the Internet on each of the 7 Ps, it is worth
briefly restating some of the well-known criticisms of applying the marketing mix as a
solitary tool for marketing strategy. First and perhaps most importantly, the marketing
mix, because of its origins in the 1960s, is symptomatic of a push approach to marketing
and does not explicitly acknowledge the needs of customers. As a consequence, the mar-
keting mix tends to lead to a product orientation rather than customer orientation – a key
concept of market orientation and indeed a key Internet marketing concept (see Chapter
8, for example). To mitigate this effect, Lautenborn (1990) suggested the 4 Cs framework
which considers the 4 Ps from a customer perspective. In brief, the 4 Cs are:
customer needs and wants (from the product);
cost to the customer (price);
convenience (relative to place);
communication (promotion).This customer-centric approach also lends itself well online, since the customer is often
in an active comparison mode rather than a passive media consumption mode.
It follows that the selection of the marketing mix is based on detailed knowledge of
buyer behaviour collected through market research. Furthermore, it should be remem-
bered that the mix is often adjusted according to different target markets or segments to
better meet the needs of these customer groupings.
Although it is useful to apply existing frameworks to new channels, the emphasis of
the importance of different parts of a framework may vary. As you read this chapter, you
should consider which are the key elements of the mix which can be varied online forCHAPTER 5· THE INTERNET AND THE MARKETING MIX
Activity 5.1 How can the Internet be used to vary the marketing mix?
Purpose
An introductory activity which highlights the vast number of areas which the Internet impacts.Activity
Review Figure 5.1 and select the twomost important ways in which the Internet gives new
potential for varying the marketing mix for eachof product, price, promotion, place, people
and processes. State:
new opportunities for varying the mix;
examples of companies that have achieved this;
possible negative implications (threats) for each opportunity.